This article discusses the concept of collaboration in the supply chain and its challenges in implementation. Despite its infancy, some authors suggest that the writing may be on the wall for supply chain collaboration. The paper argues that a supply chain segmentation approach, based on customer buying behavior and service needs, is the most appropriate context for collaboration. It also proposes the need for a greater understanding of the elements that make up supply chain collaboration, and how cultural, strategic, and implementation elements inter-relate. Collaboration in the supply chain is still relatively embryonic, emerging in the mid-1990s in the form of collaborative planning, forecasting, and replenishment (CPFR). Prior to CPFR, organizations practiced less advanced forms of collaboration such as vendor managed inventory (VMI) and continuous replenishment programs (CRP). However, the implementation of supply chain collaboration has been difficult due to over-reliance on technology, failure to differentiate between whom to collaborate with, and a lack of trust between trading partners. The paper identifies the major elements of supply chain collaboration, which include a collaborative culture, trust, mutuality, information exchange, and openness and communication. It also discusses the strategic elements of collaboration, such as resources and commitment, intra-organisational support, corporate focus, demonstrating the business case, and the role of technology. The paper suggests that a segmented supply chain approach, limiting collaboration to a small but potentially critical number of customers and suppliers, is a more appropriate context for such collaboration. The article concludes that while supply chain collaboration has the potential to offer significantly improved performance, it is difficult to implement due to a lack of understanding of what collaboration actually implies. It also suggests that the context for collaboration, in terms of when to collaborate and with whom, is a major barrier. The paper proposes that a segmented supply chain approach is more appropriate for collaboration, as it allows for a more focused and effective collaboration strategy.This article discusses the concept of collaboration in the supply chain and its challenges in implementation. Despite its infancy, some authors suggest that the writing may be on the wall for supply chain collaboration. The paper argues that a supply chain segmentation approach, based on customer buying behavior and service needs, is the most appropriate context for collaboration. It also proposes the need for a greater understanding of the elements that make up supply chain collaboration, and how cultural, strategic, and implementation elements inter-relate. Collaboration in the supply chain is still relatively embryonic, emerging in the mid-1990s in the form of collaborative planning, forecasting, and replenishment (CPFR). Prior to CPFR, organizations practiced less advanced forms of collaboration such as vendor managed inventory (VMI) and continuous replenishment programs (CRP). However, the implementation of supply chain collaboration has been difficult due to over-reliance on technology, failure to differentiate between whom to collaborate with, and a lack of trust between trading partners. The paper identifies the major elements of supply chain collaboration, which include a collaborative culture, trust, mutuality, information exchange, and openness and communication. It also discusses the strategic elements of collaboration, such as resources and commitment, intra-organisational support, corporate focus, demonstrating the business case, and the role of technology. The paper suggests that a segmented supply chain approach, limiting collaboration to a small but potentially critical number of customers and suppliers, is a more appropriate context for such collaboration. The article concludes that while supply chain collaboration has the potential to offer significantly improved performance, it is difficult to implement due to a lack of understanding of what collaboration actually implies. It also suggests that the context for collaboration, in terms of when to collaborate and with whom, is a major barrier. The paper proposes that a segmented supply chain approach is more appropriate for collaboration, as it allows for a more focused and effective collaboration strategy.